The costs of carrying inventory do not include
A) the interest on funds tied up in inventory.
B) the cost of warehouse space.
C) ordering costs.
D) insurance and handling costs.

Question

Quizplus · Accepted Answer

The costs of carrying inventory include interest on funds tied up in inventory, cost of warehouse space, insurance and handling costs, but do not include ordering costs. Ordering costs are the expenses incurred in the process of placing and receiving orders from suppliers.

The Costs of Carrying Inventory Do Not Include